hypothecation definition

  • noun:
    • using residential property, or an existing mortgage, as security for a financial loan, etc.
    • A tax levied for a particular spending
    • The act or contract through which home is hypothecated; the right which a creditor features in or even the house of their debtor, in virtue that he might lead it to be sold together with price appropriated in repayment of his financial obligation. This might be the right inside thing, or jus in re.
    • A contract wherein, in consideration of cash advanced level for requirements regarding the ship, the vessel, cargo, or cargo is made responsible for its payment, offered the ship shows up in complete safety. Most commonly it is effected by a bottomry relationship. See Bottomry.
    • In Roman law, home loan; a contract lien distributed by a debtor to his creditor as security, without offering him control for the residential property. It usually or even always linked to real residential property, while safety upon individual home was handed by control, and termed pignus, or pledge.
    • In French law (hypoth√®que), a lien on immovable home for protection of a debt, without offering the creditor possession.
    • In American economic use, a pledge; alien on personal home, especially on negotiable securities, distributed by a debtor by transferring possession, with evidences of title, to their creditor.
    • In modern-day commercial usage, the mortgage of a vessel or the woman cargo, as in the expression hypothecation bond, a bottomry bond or respondentia bond. See bottomry and respondentia.

Related Sources

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